12 Intangible Assets including Intangible Insurance Assets

In CHF million  
  30.06.2012 31.12.2011
Intangible insurance assets
  1 789 1 817
Other intangible assets
  1 888 1 905
Total intangible assets
  3 677 3 722


Intangible insurance assets
In CHF million  
  Present value of future profits from acquired insurance portfolios (PVP) Deferred acquisition costs (DAC) Deferred origination costs (DOC) Total
  2012 HY 2011 YE 2012 HY 2011 YE 2012 HY 2011 YE 2012 HY 2011 YE
Balance as at 1 January
  15 16 1 743 1 986 59 31 1 817 2 033
Additions
  2 211 389 20 55 231 446
Amortisation
  0 –1 –257 –461 –14 –27 –271 –489
Impairment
  –2 0 –1 0 –3
Effect of shadow accounting
  0 0 27 –139 27 –139
Foreign currency translation differences
  0 0 –14 –31 –1 0 –15 –31
Balance as at end of period
  15 15 1 710 1 743 64 59 1 789 1 817


Present value of future profits (PVP) — The present value of future profits relates to portfolios of insurance contracts and investment contracts with discretionary participation acquired in a business combination or transfer of portfolios. It relates to contracts acquired in Germany and France and is amortised in proportion to gross profits and margins over the effective life of the acquired insurance and investment contracts.

Deferred acquisition costs (DAC) — Certain acquisition costs relating to new and renewed insurance contracts and investment contracts with discretionary participation are deferred.

Deferred origination costs (DOC) — These costs are recoverable and are directly attributable to securing the right for investment management services within investment contract policies. They relate to contracts in Luxembourg and Switzerland.

Other intangible assets
In CHF million  
  Goodwill Customer relationships Brands and other Total
Notes  2012 HY 2011 YE 2012 HY 2011 YE 2012 HY 2011 YE 2012 HY 2011 YE
 
Cost
 
Balance as at 1 January
  1 727 1 745 311 316 236 230 2 274 2 291
Additions
  12 20 12 20
Additions from business combinations
17  6 9 2 1 7 11
Classification as assets held for sale and other disposals
  –1 –8 –1 –8
Foreign currency translation differences
  –13 –27 –3 –7 –5 –6 –21 –40
Balance as at end of period
  1 720 1 727 308 311 243 236 2 271 2 274
 
Accumulated amortisation and impairment
 
Balance as at 1 January
  –157 –157 –112 –83 –100 –102 –369 –342
Amortisation
  –14 –29 –5 –6 –19 –35
Impairment losses
  –2 –1 –3
Classification as assets held for sale and other disposals
  2 8 2 8
Foreign currency translation differences
  1 2 2 1 3 3
Balance as at end of period
  –157 –157 –125 –112 –101 –100 –383 –369
 
Total other intangible assets as at end of period
  1 563 1 570 183 199 142 136 1 888 1 905


Goodwill — Goodwill represents the excess of the fair value of the consideration transferred and the amount of any non-controlling interest recognised, if applicable, over the fair value of the assets and liabilities recognised at the date of acquisition. Goodwill includes amounts relating to both the Swiss Life Group’s interest and the non-controlling interest in the business acquired in the case where non-controlling interest is measured at fair value. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on associates is included in the carrying amount of the investment.

Goodwill relating to the acquisition of aXenta AG, Baden, in May 2012 amounted to CHF 6 million.

In 2011, the Swiss Life Group acquired a majority share of Viveris REIM, Marseilles. The goodwill relating to this transaction amounted to CHF 9 million.

Goodwill relating to Lloyd Continental has been allocated to the “Insurance France” segment. Goodwill relating to CapitalLeben has been allocated to the “Insurance International” segment. Of the goodwill relating to other acquisitions, CHF 12 million (31.12.2011: CHF 12 million) has been allocated to the “Insurance France” segment, CHF 9 million (31.12.2011: CHF 9 million) to the “Investment Management” segment and CHF 6 million to the “Insurance Switzerland” segment as at 30 June 2012.

In CHF million  
  Lloyd Continental CapitalLeben Other
  30.06.2012 31.12.2011 30.06.2012 31.12.2011 30.06.2012 31.12.2011
Net carrying amount of goodwill
  287 287 149 149 27 21
Impairment losses
 


Goodwill relating to the acquisitions of AWD Holding AG and Deutsche Proventus AG has been allocated to the “Insurance Switzerland”, “Insurance Germany” and “AWD” segments.

In CHF million  
  Insurance Switzerland Insurance Germany AWD
  30.06.2012 31.12.2011 30.06.2012 31.12.2011 30.06.2012 31.12.2011
Net carrying amount of goodwill
  81 81 255 258 764 774
Impairment losses
 


No impairment losses were recognised in 2012 and 2011.

Customer relationships — As at 30 June 2012 customer relationships comprise customer relationships relating to the “AWD” segment CHF 143 million (31.12.2011: CHF 156 million), “Insurance France” segment CHF 20 million (31.12.2011: CHF 21 million), “Insurance International” segment CHF 19 million (31.12.2011: CHF 20 million) and “Investment Management” segment CHF 1 million (31.12.2011: CHF 2 million).

Brands and other — Consists of brands, trademarks, computer software and other intangible assets relating to AWD CHF 99 million (31.12.2011: CHF 98 million) and other CHF 43 million (31.12.2011: CHF 38 million) as at 30 June 2012.

 

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